Hong Kong Country Summary
Medium Risk
View full Ratings TableSanctions
Medium Concern
FATF AML Deficient List
Lower Concern
Terrorism
Lower Concern
Corruption
Lower Concern
US State ML Assessment
Higher Concern
Criminal Markets (GI Index)
Medium Concern
EU Tax Blacklist
Lower Concern
Offshore Finance Center
Higher Concern
Please note that although the below Summary will give a general outline of the AML risks associated with the jurisdiction, if you are a Regulated entity then you may need to demonstrate that your Jurisdictional AML risk assessment has included a full assessment of the risk elements that have been identified as underpinning overall Country AML risk. To satisfy these requirements, we would recommend that you use our Subscription area.
If you would like a demo of our Subscription area, please reserve a day/time that suits you best using this link, or you may Contact Us for further information.
Anti Money Laundering
FATF Status
Hong Kong is not on the FATF List of Countries that have been identified as having strategic AML deficiencies
Compliance with FATF Recommendations
The last follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Hong Kong was undertaken in 2023. According to that Evaluation, Hong Kong was deemed Compliant for 11 and Largely Compliant for 25 of the FATF 40 Recommendations. It was deemed Highly Effective for 0 and Substantially Effective for 6 of the Effectiveness & Technical Compliance ratings.
Sanctions
The United States has not imposed international sanctions against Hong Kong but has suspended or eliminated preferential treatment for the region in areas related to national security, foreign policy, and economic interests as of July 2020. The United Kingdom, on the other hand, has extended its embargo on military items to Hong Kong in response to the National Security Law, which includes a partial arms embargo covering lethal weapons and equipment that could be used for internal repression.
Criminality
Rating |
0 (bad) - 100 (good) |
|---|---|
| Transparency International Corruption Index | 74 |
| World Bank: Control of Corruption Percentile Rank | 93 |
Hong Kong has established a robust framework for combating corruption, primarily through the efforts of the Independent Commission Against Corruption (ICAC), which has garnered international recognition for its effectiveness. The region's commitment to anti-corruption measures, including the establishment of the Hong Kong International Academy Against Corruption, reflects a proactive stance that has not deterred foreign direct investment, as U.S. firms do not view corruption as a significant barrier.
Economy
Hong Kong's economy, characterized by its status as a Special Administrative Region of China, operates under a high degree of autonomy, though recent legislative changes, particularly the National Security Law and the Safeguarding National Security Ordinance, have raised concerns about the erosion of this autonomy and the implications for the investment climate. Despite these challenges, Hong Kong remains a highly open economy, attracting significant foreign direct investment and serving as a major financial hub, with a service sector that accounts for over 90% of its GDP. However, the increasing legal uncertainties and risks associated with compliance under the new laws have led to a decline in the presence of foreign firms and a cautious approach to investment, highlighting a complex interplay between its competitive economic environment and the tightening political landscape.
Subscribe to
Professional Plus
- Unlimited Access to full Risk Reports
- Full Dataset Download
- API Access
- Virtual Asset Risk Assessments
